Q7. Study the balance sheet of JYK Agricultural Cooperative in table 4 on the next page and compute the required cooperative financial ratios thereafter. You are required to;

(a) Calculate the fixed asset to term debt ratio.

(b) Calculate the fixed asset to patrons equity ratio.

(c) Calculate the Inventory Turnover

(d) Comment on the ratios you have calculated in (a), (b) and (c) above.

Table.4. JYK Agricultural Cooperative: Balance sheet (in Kwacha) as at 31st May, 2018 Capital: Common stock Retained refunds Unallocated reserves Long term liabilities Sub-Total 350,000 80,000 40,000 200,000 670,000 Fixed Assets: Buildings Land Equipment Others Sub-Total Less depreciation 200,000 100,000 230,000 50,000 380,000 20,000 Net fixed assets 360,000 Current Liabilities: Short term loan Patronage refunds payable Taxes payable 150,000 100,000 10,000 Current Assets: Debtors Less bad debts 200,000 10,000 Sub-Total 260,000 Net debtors Prepaid expenses Cash at bank Inventory Securities 190,000 80,000 250,000 10,000 40,000 Sub-Total 570,000 Total 930,000 Total 930,000